Banks Face Quarterly Leverage Ratio Reporting Rules, EBA Says

European banks may have to report their debt-to-equity ratio to regulators every quarter from next year, the European Banking Authority said on its website today.

The EBA, set up in 2011 to harmonize banking rules across Europe, is seeking banks’ views on measures for reporting leverage and liquidity as part of the bloc’s implementation of global capital rules known as Basel III. The consultation process will run until Aug. 27, with final standards to be decided on before the end of the year.

“As the leverage ratio is expected to apply to different European institutions, which differ in size, nature and complexity, it is necessary to apply the requirements for more detailed reporting of the components of the leverage ratio in a proportionate manner,” the London-based EBA said in the report published on its website today.

The Basel committee, which brings together banking regulators from 27 nations including the U.S., U.K. and China, has toughened rules for banks’ capital, leverage and liquidity following the collapse of Lehman Brothers Holdings Inc. in 2008 and the ensuing financial crisis.

European lenders may face monthly liquidity reporting rules as part of the regulatory overhaul, the EBA said in a separate report.

To contact the reporter on this story: Ben Moshinsky in London at bmoshinsky@bloomberg.net

To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net

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